How to become a banker in India? A 4-year undergraduate degree in business, accounting, finance, a preferable educational qualification, is the basic eligibility.
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The Indian banking sector has shown significant improvement in the past six years. It is because people are becoming more financially literate. So how to become a banker in India? The basic eligibility is clearing undergraduate degrees and clearing the relevant bank entrance exams. The duties of a banker are mainly concerned with loans, savings, taxes, and investments.
How to Become a Banker?
Becoming a Banker is not an easy task. Everyone says that you need to be good at math to become a good banker. Maths indeed is one of the major skills you must possess, but it isn't the only one. It takes years and years of education, perseverance, knowledge of finance, hard work, and determination to become a banker in India. Bankers usually get engaged in roles like accepting deposits, making loans and clearing transactions.
Here are the detailed steps on how to become a banker in India.
- Step 1: Get a 10th Class Diploma
- Step 2: Obtain a Degree in Banking
- Step 3: Participate in an Internship
- Step 4: Become an Investment Banker
- Step 5: Get Licensed
- Step 6: Consider Obtaining an MBA
Step 1: Get a 10th Class Diploma
The first step is to get a diploma in High School. While studying in the 10th class, it is necessary to choose courses in math and business to prepare themself. Students should start getting to know about databases and spreadsheets. Those who have a high school diploma certification can work as personal bankers quickly.
Step 2: Obtain a Degree in Banking
After completing step one, students must get a bachelor's degree course in banking and finance programs. These courses nurture students in the right way about accounting, regulatory compliance, and other practices associated with banking. Students need to have a motive to learn banking and financial management to help in their understanding.
Step 3: Participate in an Internship
A banking internship plays a great role as it gives bankers the experience required in the field. It could be part of a degree program or just a summer internship. In addition, it gives them an understanding of banking policies and regulations.
Additionally, an internship may help them get a hold of the responsibilities they'll have once they begin employment. Internships are also a way for individuals to start making connections in the field and networking for future employment opportunities.
Step 4: Become an Investment Banker
For better jobs in the banking sector, you need to try this post. Banks offer investment banking training programs that will prepare students to get accustomed to the strategies involved in making investments and working with clients. Those who have joined this particular program have been introduced to business practices, banking services, and client relations. Besides, banks help students by providing individuals with case studies, presentations, and modelling sessions.
Step 5: Get Licensed
After completing the previous step, investment bankers should be registered to the Financial Industry Regulatory Authority (FINRA). After registering, there will be a time-consuming process that requires opening a new bank account from which specific registration fees have to be paid. The student's fingerprints are required, after which they will have an interview. In the end, a series of exams must be completed to obtain the license finally.
Step 6: Consider Obtaining an MBA
Pursuing an MBA will always boost your chances of getting hired because of that extra degree. According to the BLS, a Master of Business Administration degree prepares employees to work in high-level banking positions by teaching them how advanced banking and financial concepts work. Some new programs provide students with opportunities that teach them how to follow the market, learn about trends, and make investment decisions.
Eligibility to Become a Banker in India
To join the banking field, one doesn't need many specializations or certifications, but there are ways in which one can upgrade the skills required in the banking sector and learn how the world of baking works.
The points mentioned will help in how to become a banker.
- To get a job at a bank, a bachelor's degree will suffice for entry-level or clerical work, but if you are aiming for a higher position, then a master's degree will make it easier for you to get that job.
- Most employers look into the additional certification courses and banking examinations completed by the candidate. Few financial institutions might ask you to take up certification courses and exams after you join as well.
- Suppose you are planning to become an investment banker. In that case, you must have a degree in finance, business administration, accounts, or economics because the job of an investment banker needs a great depth of knowledge.
Popular Bank Exams in 2021
The list of banking exams given below will suffice for personal as well as commercial banking, but if one wants to be an investment banker, then they need to have adequate educational qualifications.
Check the most popular bank exams in India.
NABARD Grade 'A' and 'B' Officer
NABARD exam conducted by the National Bank of Agriculture and Rural Development. As the bank is a government institution and focuses on rural development, the officers will be in charge of banking in rural areas.
One can go up to the position of deputy managing director if their work is considered to be appreciable. The exam will be an online test with two parts: Phase 1 and Phase 2, after which an interview will also be held. The position of grade 'A' officer is the post of manager, and grade 'B' officer is for assistant manager.
RBI Grade B Officer
Reserve Bank of India is a national institution that is the decision-making authority regarding various schemes and policies about the money market in India. This is for the entry-level managerial job at the Reserve Bank of India. The test will be an objective-based test with various mains, followed by a personal interview.
IBPS PO
IBPS stands for the Institute of Banking Personnel Selection, a board concerned with public sector banks. The post that the candidate will be giving the examination for is that of the probationary officer.
The job of a probationary is to supervise general day-to-day work and look for ways to increase the bank's business. The promotions and incentives will be given to a probationary officer based on the individual performance as well as the performance of the bank. There will be an objective-based preliminary examination as well as mains and a personal interview.
Best Investment Banking Courses Online
A post-graduation degree like MBA or MA in Economics will also help you get the job as an investment banker, but courses like CFA are mainly designed for investment. The course for Chief Financial Analyst (CFA) is a program that is a curriculum that is recognized worldwide and is accepted globally.
The course will help in getting to know how to become a banker.
- The course helps in building a strong foundation in the world of investment and analysis. It is a combination of portfolio management skills and the practical knowledge required in the investment industry at the present age.
- Apart from the academic curriculum, the course also focuses on the ethical and professional codes one has to follow in the investment sector to decrease fraudulent activities in the financial world.
- The eligibility for CFA includes conditions like you need to be in the final year of your graduation to apply for the course, or you could have completed a four-year-long professional course.
- To pursue CFA, you need to register with the CFA training institute.
- You need to finish Level 1, Level 2, and Level 3 subsequently to be qualified for practice.
- After successful completion, you will be able to choose from different types of jobs in the investment sector.
Types of Bankers
Bankers who work in the retail banking department whose job is to provide information regarding basic operations of the bank like transactions, details about loan services, or other banking services branches and help the customers of the bank by assisting them with various needs, such as the opening of accounts like current or savings accounts.
Below are some of the various employment opportunities.
Personal Banker
To become a personal banker, banking companies expect you to have fluent communication skills in English and sometimes in the regional languages. Therefore, candidates with graduation in English might be preferred, but expected graduation should be fine most of the time.
Responsibilities of Personal Bankers include the following.
- Convincing customers to borrow loans and invest in deposit certificates (CDs), money markets, and other commercial banking products.
- Most people do not know about loans like education loans, so a personal banker helps you understand it better and make it beneficial.
- A personal banker also gives financial advice for senior citizens regarding money after retirement.
- The job of a private banker is to deal with customers on a smaller scale and help them understand the world of banking in a better manner.
Investment Banker
The job of an Investment banker is primarily to help a common man with financial instruments like stocks and shares of a company along with complying with the rules set by the regulatory board like the Securities and Exchange Board of India.
There are three ways either you graduate from a reputed management institute with an MBA degree, take up a career in fields like taxation and then within the company, and the graduate can shift and thirdly try to pursue a short term course from a leading institute like the Wall street school.
Some of the details of Investment Bankers include the following.
- The job of an Investment bank starts when a company announces that it is ready to sell a part of its company in the form of shares to the public, and it is called an initial public offering (IPO).
- When a company announces its IPO, the investment bank will try to sell as many shares to the public to earn profits. Hence, the investment bankers are the intermediary link between the company and the public.
- An investment bank, to make profits, will keep the prices of the shares higher than the initial amount, and this will fluctuate all through the day.
- They are bound to lose the money they have invested if they overvalued shares as the demand will decrease, and they have to calculate the risk they will be taking.
- An investment banker has fewer work-life bankers, but the amount of money they can make in a short while is a lot.
Commercial Bankers
The job of a commercial banker is similar to that of a personal banker. To become a commercial banker and get a degree in finance, mostly an MBA in finance, is preferred but could depend on the job role and the firm you are working in. A CA should be a significant advantage to secure a job in top finance firms.
Responsibilities of Commercial Bankers include the following.
- They are in charge of providing details regarding the bank's services but work for longer hours and have to learn about working in various departments.
- A commercial banker is expected to work for 40 hours to 60 hours a week.
- Commercial bankers should sell each product of the bank like loans, credit cards, deposits, and other various facilities.
- Based on the bankers ability to sell the products of the bank, they will be offered with commissions and incentives.
- They are eligible to work in various departments of the bank.
- Commercial bankers will also be considered for promotions in higher-level management based on their performance and diligence.
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